What is Ticks on Uniswap?

Question

I'm a very beginner in dex protocol. Can someone explain to me what is a uniswap Tick? Many thanks.

Answer 1

Basically bondaires between price space (according to they doc). In pratice the price of the currency can be aways represented as a tick, thus it will be in a range represented by ticker upper and ticker lower.

If the current price is inside the tick range in which you has liquidity inside ( minted a nft represent your position ). You will be earning the fees from the pool.

Answer 2

Ticks are simply a way to represent token prices in Solidity. It's one way to work around the peculiar nature of performing complex math operations in Solidity, since it enables representing token prices as integer number.

You can imagine the Tick being another form of the token price, and here is the exact formula for converting ticks to prices and vice-versa:

Answer 3

in uniswap v3 we have concentrated liquidity. User has to decide in which price range s/he wants to have their liquidity gets traded. for this, uniswap has to find a way to decide the price ranges. this is why tick is used in v3.

this is from uniswap v3 white paper

It is the same concept in traditional finance. A tick is the smallest increment by which the price of a security can move. If you follow the different stock prices, they all have different ticks. some increases by $0.01,some increase by $0.1.